Zimplats confirmed yesterday (18th February) that it experienced a 15 per cent increase in pgm production on a year-on-year basis for the half-year to 31st December 2008.

The Zimbabwean miner, which is controlled by Impala Platinum - the world's second-largest producer of the precious metal - revealed that it despatched 93,909 oz pgm during the period.

The increase is largely being attributed to the 43-day furnace re-line shut down during the equivalent six-month stretch in 2007, when metal production and despatches were lower than normal.

Despite the increase in sales, the company also announced that its revenue was down by 58 per cent to $41 million, owing to a combination of declining metal prices and pipeline adjustments.

This resulted in an operating loss of $28 million, which compares unfavourably to a post-tax profit of $30 million for the previous period.

"The PGM market remains depressed reflecting the troubled state of the world economy, in particular the automotive industry," the company said.

"Without an easing of the world financial crisis, no meaningful recovery in prices is expected in calendar year 2009."

However, Zimplats also confirmed that it is making "satisfactory" progress with its Ngezi Phase 1 expansion project, for which it has now fully drawn an $80 million loan facility.

The mine concentrator is on target to be commissioned in April and full production is expected to be reached by June.

Zimplats also noted that it suffered six lost time injuries during the period, despite increased focus on safety.

Sources:

Half year Directors' Report and Financial Statement 31 December 2008 (17/02/09)
http://www.zimplats.com/pdf/hyr2009.pdf

Zimplats plunges to $26m loss (18/02/09)
http://www.miningweekly.com/article/zimplats-plunges-to-26m-loss-2009-02-18